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Competition watchdog concerned by EMR/MWR merger

Global – Following an initial investigation, the UK’s Competition and Markets Authority is concerned that the purchase of Metal & Waste Recycling by European Metal Recycling ‘could lead to a reduction in choice, price, quality and service to customers’. The watchdog will now refer the merger for ‘an in-depth investigation’ unless its competition concerns are put to rest.

‘These are two of the largest metal recyclers in the UK,’ states the authority.

‘As part of its initial investigation, the CMA found that EMR and MWR were the two main companies offering to purchase waste scrap metal and shred scrap metal in the area around and to the north of London. Following the deal, the merged company will face limited competition from other metal recyclers in this area.’

The CMA has decided that, given the possibility of a substantial lessening of competition as a result of the merger, it should be referred for ‘a phase 2 investigation’ unless the parties ‘offer acceptable undertakings to address these competition concerns’.

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